The Trump administration on Thursday finalized new double-digit tariffs on dozens of U.S. trading partners as it seeks to reconstitute sweeping tariffs struck down by the Supreme Court in February. The new tariffs, ranging from 10% to 12.5%, follow a five-month investigation into trading partners’ efforts to remove products made with forced labor from their
The Trump administration on Thursday finalized new double-digit tariffs on dozens of U.S. trading partners as it seeks to reconstitute sweeping tariffs struck down by the Supreme Court in February.
The new tariffs, ranging from 10% to 12.5%, follow a five-month investigation into trading partners’ efforts to remove products made with forced labor from their supply chains and will take effect just as a temporary 10% global tariff expires.
Starting Friday, 17 trading partners, including Canada, the European Union, Indonesia, the United Kingdom and Mexico, will face a 10% tariff, along with 10 other countries that have agreed to address forced labor through trade agreements signed with the United States.
Another 43 countries, including Japan, China, South Korea and Australia, will face a 12.5% tariff rate. The rates are in line with the investigation’s preliminary findings, published in early June.
“Today’s action is the most comprehensive international action on labor rights that the United States has ever taken, that any country has ever taken,” said a senior administration official, who requested anonymity to discuss the new tariffs. “It encourages greater enforcement of labor rights abroad, will restore justice in the global marketplace for American workers, and incentivizes our trading partners to join the United States in eliminating forced labor from global supply chains.”
A few countries were able to reduce the tariff rate on their products by implementing a ban on forced labor after the proposed tariffs were first announced in June, including India, Trinidad and Tobago, Honduras and Sri Lanka.
While the new order maintains existing tariff exemptions for a wide range of products such as coffee and goods that comply with the 2020 North American trade agreement, the administration also created more exceptions for products such as cork, which comes primarily from Portugal, roses from Switzerland, and gems such as diamonds and rubies from several countries.
The tariffs, imposed under Section 301 of the Trade Act of 1974, will go some way toward rebuilding the tariff wall brought down by the Supreme Court’s February decision. Following that ruling, President Donald Trump imposed a 10% global tariff under Section 122 of the same statute. But that law only authorizes rates for 150 days, and the current ones will expire on Friday.
Many countries still face lower tariff rates than last year, when Trump imposed “reciprocal” tariffs under the International Emergency Economic Powers Act. The Supreme Court ruled that the law did not justify the tariffs.
China faced a 20% tariff on most products when IEEPA tariffs were still in place; IEEPA tariffs on Japan and South Korea stood at 15%; duties applied to Indonesia, Malaysia, Pakistan and Thailand were 19%.
Senior administration officials on Thursday sought to differentiate the new tariffs from those that were removed earlier this year.
“I think it’s a little simplistic to just say, ‘Oh, you’re just replicating whatever,’ because obviously that’s not the case,” the senior administration official said. “I think it’s an easy shorthand, whether it’s analysts or even administration people, to say, ‘Well, you know, we can see tariffs going up.'”
The Office of the U.S. Trade Representative is expected to issue more tariffs after completing other Section 301 investigations that are still ongoing. A second broad investigation into excess manufacturing capacity at 16 trading partners could result in higher tariffs for China, the EU, Indonesia, South Korea, Vietnam, Mexico, Japan and India, among others.
Asked Thursday if that second investigation was on pause, the senior administration official said “not at all.”
“We’re trying to be quite thorough. The issues surrounding structural overcapacity are quite complex,” the senior administration official said. “That investigation continues apace.”
Another 301 investigation looks at pricing practices for pharmaceuticals in Germany. U.S. Trade Representative Jamieson Greer told POLITICO last week that he has similar investigations “waiting in the wings” if ongoing discussions with France and others over drug pricing collapse.
The administration recently concluded a separate investigation into Brazil’s trade practices after a year-long investigation. New 25% tariffs on Brazilian exports will come into force on Wednesday, with important exceptions.
Ari Hawkins contributed to this report.
This story originally appeared in POLITICO and is courtesy of the Axel Springer Global Reporters Network, which leverages the resources of the company’s newsrooms to publish ambitious scoops, investigations, interviews, opinion pieces and analysis. It allows journalists, including those at POLITICO, Business Insider, WELT, BILD, Onet and Fakt, to collaborate on important stories for an international audience of hundreds of millions across all platforms.
